SKF India Limited (500472) Earnings Call Transcript & Summary

Next, I would like to introduce Mr. Shailesh Kumar Sharma, Whole Time Director. He is a member of Risk Management committee. He is participating in this meeting from Pune Maharashtra. Now I'd like to introduce Mr. Karl Robin Joakim Landholm, a nonexecutive, nonindependent director of your company. He is also a member of Nomination and Remuneration Committee. We also have with us Mr. Ashish Saraf, Chief Financial Officer, who is attending this meeting from Pune, Maharashtra. We also have Mr. Ranjan Kumar, Company Secretary and Compliance Officer, who is attending this meeting from Pune, Maharashtra. Mr. David Johansson, who is also proposed to be reappointed as Director, label to retire by rotation, would not join this meeting due to other preoccupation. The company has met all possible efforts under the current circumstances to enable the members to effectively participate in this meeting through videoconferencing facility and also to vote electronically. I would now request Mr. Ranjan Kumar, our Company Secretary and Compliance Officer, to check and confirm the quorum of this meeting and also share some important information about this meeting with the shareholders. Over to you Ranjan Kumar.

Thank you, honorable chairman. After looking at the number of members present in this meeting, I confirm that the requisite quorum, as required by law, for this meeting is present. This being a virtual AGM, so the shareholders who have joined this meeting through videoconferencing have also been considered for the purpose of computing the quorum. Now I would also like to record and confirm the presence of authorize representatives of our statutory auditors, which is M/s Deloitte Haskins & Sells, the representatives of our secretary auditors, which is Parikh & Associates. And the representatives of the cost auditor which is RA & Co. Now a brief announcement for the speaker shareholders. The shareholders who have registered themselves as a speaker will be allowed to speak when the name of those shareholders announced with the request to speak. Immediately after the announcement of the name, the audio and video facility will be open for the respective shareholders. Shareholders may further note that the recorded video of the proceedings of this meeting will be placed on the website of the company as the last on the website of NSDL. The same would also be posted to the stock exchanges where the shares of the company are listed, which is BSE Ltd and National Stock Exchange of India Ltd. It's also proposed that the transcript of this meeting will be placed on the website of the company as well as will be posted to the stock exchanges where the shares of the company are listed. Now about the statutory records, which have been kept open for inspection of the shareholders. So the following records have been provided or uploaded on the website of the company for the inspection of the shareholders electronically, remotely and register of Directors and key-managerial personnel and the shareholding which is being maintained by the company under Section 170 of the Companies Act, the register of contracts and arrangements maintained by the company under Section 189 of the Companies Act and all other documents which have been referred in the notice and explanatory statement of this meeting. Members may further note that the annual report of the company for the financial year ended 31st of March 2023 has already been shared with them via email dated 11th July 2023, this has also been posted on the website of the company for the convenience of the shareholders. With this I would refer back to Honorable Chairman to share his outlook on the business environment of the company and to shareholders.

Thank you, Mr. Kumar. Dear shareholders, good afternoon, once again, ladies and gentlemen. On behalf of all the Board members and SKF India team, I warmly welcome you all to the 62nd Annual General Meeting of your company for the financial year 2022 to '23. As you know, FY 2022, '23 was a very successful year for SKF India Limited. Therefore, it's indeed my pleasure to dwell on the year that passed as well as give you a brief on the outlook for the year ahead of us before I invite Mr. Manish Bhatnagar to make a detailed presentation. Strong financial performance. Despite a challenging macroeconomic environment, the company delivered a robust performance across all our businesses in the fiscal year 2022, '23. The company's firm commitment to disciplined cash flow management, operational efficiency and strong relationship with suppliers have helped us navigate the bottleneck along the way. As a result, the net profit before tax is INR 733 crores, and the net sales revenue is INR 4,305 crores, up 38% and 17% respectively, over FY 2021, '22. The company's strong results are testimony to the hard work and dedication of our entire team who have tirelessly strived to achieve excellence in every aspect of business operation. The company's relentless focus on customer-centric innovation together with operational efficiency has helped consolidate its position as a leading riding manufacturer in the country. The company's accounts for the year ending March 31, 2023 along with directors and auditors' reports are already with you and with your permission, I would like to take them as read. I now turn to business environment. Over the past 3 years, the global economy has been subjected to an unprecedented series of crisis, including COVID, high inflation and the ongoing geopolitical tensions. Despite global challenges, India has achieved impressive growth of 7.2% in fiscal 2022, '23, supported by domestic consumption, favorable policy environment and a stable democracy. Considering the company's strong product portfolio across automotive and industrial segments, it's long-standing healthy relationship with customers, distributors, suppliers and all other stakeholders, the business operation of the company are expected to report satisfactory financial results in the coming months. Executing our intelligent and clean growth strategy. As you well know, in the year 2022, SKF launched the intelligent and clean growth strategy. In FY 2022, '23, the company continued to accelerate the execution of the strategy effectively through portfolio management, prioritizing high-growth segments, exercising disciplined cost control and leveraging pricing bar. Throughout the year, the business performed exceptionally well and the company sees every opportunity to deliver outstanding value to shareholders. Within automotive, the company pursued electric vehicle segment and position itself as a preferred partner for meeting mobility requirements. The company will continue to cater to the evolving needs of electric vehicle market, thereby solidifying its position as a leading player in this space. In industrial, the company remains steadfast in maintaining the growth trajectory and capitalizing on emerging opportunities especially in renewables and railway segments. Proximity to customers is key. By strengthening the local presence, tailoring solutions to meet unique needs, expanding manufacturing capabilities and deepening the relationship with partners, the company remains successful in delivering superior products and service and thus generating long-term customer loyalty and trust. Focusing on employees. Your company remains committed to creating a culture of inclusivity, collaboration and growth where employees realize their full potential. Throughout the year, the company continued to upskill its employees through various skills, learning and development program, and career advancement pathways to augment the workforce in tune with your company's sustained growth. The company will continue to invest in its employee growth and well-being, to drive collective success and deliver exceptional value to customer. Sustainable growth for all. The company believes in sustainable growth of society. And for this, the company has heightened its efforts in community initiatives with a particular emphasis on education, skill development and environmental sustainability by prioritizing long-term sustainable projects like youth empowerment at SKF centers, the company is committed to making lasting and meaningful impact on society. In line with the net 0 commitment, your company made significant strides in minimizing the environmental impact of its own operations through initiatives such as product remanufacturing, and recycling programs. Your company is actively contributing to the circularity of materials, reducing waste and helping in decarbonization of customers. By integrating sustainability and business strategy, your company is not only creating value for its stakeholders, but also contributing to a better and more sustainable tomorrow. Looking ahead, I'm thrilled with pride for the accomplishment in FY 2022, '23 and the exciting momentum the company is building. I'm particularly proud of the operational excellence demonstrated by the teams in what has been a challenging market environment. Looking ahead, while the pace of economic recovery remains uncertain, I'm hopeful that the company will seize key growth opportunities in the months to come. The company has a clear compass for the journey ahead. [ There's still ] whether we imagine rotation for a better tomorrow encapsulates its commitment to driving positive change not only within the organization but also in the industries itself and the communities it operates in. By combining its experience and deep understanding of customer needs, along with its skilled employees, strong manufacturing footprint and unmatched capabilities, the company is well positioned to drive sustainable growth and deliver value to our shareholders. On behalf of Board of Directors, I'd like to thank all shareholders, our customers, employees as well as our partners, including distributors and suppliers for their continued trust, confidence and support. Together, we shall continue to innovate and act and lead the way in delivering exceptional value, driving positive change and shaping a better tomorrow for all. Thank you and best regards. Now I would request Mr. Manish Bhatnagar, Managing Director, to apprise the members with the performance of the company during the financial year under review that is 2022, '23. Over to you, Manish.

Thank you, Mr. Chairman, for that very energizing speech, and I'll turn attention to the performance of your company, dear shareholders, in the last financial year. Next slide, please. This is also a very exciting year for us in 1923, so exactly 100 years ago. SKF set up its first office, if you can call it that or a warehouse, in what was then Calcutta. And our first factory was set up post-independence in 1961. The picture you see here is our Pune facility, which includes our corporate office and the factory. And I think over the last 100 years, we've come a very long way in terms of our presence in this country. We clearly are well known to have a very, very strong commitment to innovation. We now have almost 3,000 employees, 3 factories, many, many satisfied customers and many suppliers. And we've built a large successful ecosystem of industry, and we are very, very proud of being in this company. Next, please. So today, I'll focus on a few things we coupled, a little bit about SKF. We'll talk about some of -- most of it you already know, but there are new things around our purpose and strategy that we'll talk about. We'll get into results for the last year and for the quarter that just went by. We'll talk about some customer success stories, which will inform you towards our intelligent and clean future. And finally, we'll summarize our presentation. Next, please. So what you see on this slide has 2 parts to it. If you recall at the last AGM, we rolled out our strategy. We call it the intelligent and clean strategy for people and the planet. Today, we've combined that strategy, with a new purpose for SKF and you see the purpose on top here together, we reimagine rotation for a better tomorrow. Why is a purpose important? Serving shareholders is, of course, the main purpose of a corporation, but it's also about serving society through innovation, through commitment to a healthy environment and economic opportunity for all. And that's what the purpose hopes to bring to life. That's the reason we exist. The purpose here, the statement here, together, we reimagine rotation for a better tomorrow has many parts to it. And I'll try to unpack some of those words to maybe better explain what the purpose is. The first 2 words: together, we. This really amplifies SKF at its very best. It simple -- it implies partnerships between SKF teams, SKF colleagues, SKF departments inside the company, but also talks about enabling greater partnerships with customers, with other stakeholders, with potentially even emerging disruptors. And that's how we will all succeed, that's the together, we part of it. The word reimagine speaks to SKF really being the home for the brightest brains and our collective knowledge. There's a deliberate use of the word re referenced both remanufacturing and reuse. It amplifies our commitment to continuous innovation that we've always been known for and improving reliability, efficiency of our products, processes and the way that we work. It's really circularity in everything we do. Rotation speaks to our heritage. It's a very deliberate link to our heritage and core business in rotation and really enabling things that move. Circularity was also a very popular concept when we made this purpose statement. And reimagining rotation also reflects rotation linked to circularity. It's rotation linked to motion, it's rotation linked to sustainability. So a very powerful word that really speaks to also heritage and coal legacy. And finally, better tomorrow. It feels forward-looking. It is forward-looking. It's ambitious. It's a never-ending journey. It's about signifying, signaling our commitment to both our environment and our social impact. So we really are an engineering business that cares. All these words put together is why we exist. Together, we reimagine rotation for a better tomorrow. Combine that with our strategy, our strategic framework was really based on 2 concepts: Intelligent, and clean. And again, just a refresher for us. Intelligent means providing connected offerings for our customers as well as using technology to make our own operations more efficient. And clean reflects our ability to enable a more sustainable industry while also running our own business in a transparent manner. What you see here are segments that we've identified as growth areas. So we will capture growth by focusing on 4 main areas, segments with high growth potential, where we have a strong position, could be high-speed machinery, electric drives, F&B, et cetera. We will also constantly review our portfolio and make sure we double down where we have a competitive edge. We will also develop offers for new emerging industries with new technologies. Examples could be hydrogen processing, carbon capture, magnetic bearings, et cetera. And finally, we'll also refocus our service business, simplifying our offer to address a wider portion of the market. And to make the most of these growth opportunities, we'll also need to become a little bit more focused and more decisive and that's where the growth enablers come into play. To scale up the pace and impact of technology development, very soon doubling our expenditure on R&D. We will digitalize our full value chain, making it easier to do business with us, we'll keep investing in regionalization and automation. And finally, we will place end-to-end operational and financial accountability as close to customers as possible. So hopefully, this gave you a feel for our purpose, our strategy, our growth areas and our growth enablers and how they all come nicely together in what we think is the way forward. Next please. Finally -- next section is on performance for the last financial year. Next please. And we clearly had an outstanding year. As Mr. Chairman pointed out, we had a fantastic year, organic growth of 17.5% in a very, very challenging macroeconomic environment. We all read the headlines. The world has become much more complex, much more uncertain, much more volatile. We're facing challenges on cost, inflation, supply chain, everywhere. In this environment, delivering a 17.5% organic growth is -- we are very proud of that, not just delivering good growth numbers, also delivering profitable growth numbers. Profit before tax went up 258 basis points. We delivered a 16.8% EBITDA, a great performance. And I think what's truly important to us is also cash flow because cash drives our business, cash drives our investments, and we had an 83% increase in our cash flow from operations. Next. A bit comparison on our performance over the past few years. And you see, look at these graphs and you see it's been kind of up and down when last year has really been a standout year. You can see the dark blue bar on the right side of these graphs, whether it's net sales or PBT or EPS on each of those 3 metrics, we are way ahead of where we were in any of those previous 5 years, and we are very, very proud of that. Next. Turning our attention to the quarter that just went by. Of course, that was last year. But this slide just shows you how we are continuing to deliver on that strong performance of last year. For the quarter that just went by, revenue was up 9.2%, PBT up 135 bps, and net working capital down 3.5%, why the last number is so important is because that really helps us improve our cash flows. So strong performance in Q1 of this year and hopefully keep continuing this to rest of the year. Next, please. So we have 3 examples we want to share with you. It's one thing to talk about strategy on a PowerPoint slide. It's another to show you actual examples where we are winning with customers. And of course, our employees. So we have -- the first one, next please, is around enabling growth with automotive. Next slide. What you see this picture, of course, you recognize a car. It's a Mahindra car. And you know automotive is about half our business. And Mahindra is a very, very important customer to ours. If you have follow Mahindra story -- if you're following Mahindra story over the last few quarters, how they have doubled down on new passenger cars. So they came to us when they were launching their new models, Scorpio, Bolero and Thar and they said, how can SKF help partner with them to joint development with them to develop low friction energy-efficient TRBs for the drivetrains on these new models. They really wanted to build and sell cars, which were different, off road cars, reduced power horses and we've partnered with them and we really are very proud to be in these vehicles, Scorpio, Bolero and Thar and many more that they're developing right now. It's a partnership we are -- we hope will stand the test of time. And we really encourage all of you to buy more Mahindra cars because, in effect, then you're buying more SKFs. Next. Our industrial, half our business is automotive, the other half is industrial. This is an example from Cement Orient, KHD Humboldt, some of you may know the name, they make grinding mills for cement plants. We've tried -- we tried really hard to get some success here. But the big challenge we faced was the bearings they wanted were not localized, that is they were not being made in India. So we had to import these bearings from Europe. And when we import these bearings from Europe, there are challenges on cost, they were way more expensive, the cost of manufacturing in Europe, the freight, the duty, et cetera, then what this customer was prepared to pay. In addition to cost, there was a lead time issue. The lead time for these bearings was in excess of 13 to 16 weeks. So naturally, there was no way we could have won any business here. The costs were too high. The lead times were too high. So we took it upon ourselves and the challenge to start making these bearings in India. Our plants in India now are making these bearings, and we are now supplying these to the customer, and we've gained now a nice double-digit share at this customer. So a good example of how driving localization bring more investments there is helping us win more business with key customers in India. Next. Also, in addition to our customers, we also are a company of people, a company of employees that we care so deeply about. And these are the folks that really make this company what it is and we keep investing in our employees, whether it's training, whether it's safety, whether it's wellbeing, and there are many, many stories, many, many examples here. But the picture you see here is at the end of a training program on specific technology that we use for employees. And we are really grateful to all our employees who work so hard every day in making this company successful. Next. Mr. Chairman also mentioned in his opening speech about climate goals. And our purpose captures it about -- when we talk about a better tomorrow. So we have a commitment that we are now publicly stating we intend to decarbonize our own operations by 2030, and we will be net 0 in our entire supply chain by 2050. Next slide, please. We'll talk a little bit about our entire supply chain. So Scope 1 and Scope 2 and Scope 3. Scope 1 is completely within our facilities. Scope 2 is within our sphere of influence, and Scope 3 is folks outside our sphere of influence, but in our supply chain. So in the past year, we have now had on Scope 1 and 2 a 3.4% improvement in energy efficiency, and we now source 41% of our total electricity from renewable sources. When we want to decarbonize by 2030, keep in mind that 41% will need to go to as close to 100% as possible. By 2050, we want to be net 0 in all our operations, including Scope 3. In just the past 1 year, we've been working with steel mills. 8 steel mills, these are mills supplier to us, all of them, by the way, are being monitored now for carbon emissions. And we're also now working with our top 100 critical direct and indirect material suppliers for their ESG and Scope 3 assessment. And the intent here is while the goal is still a few years away, we want to start mapping out these suppliers so we know what their current benchmark -- what their current situation is so we can benchmark them with the best and drive them towards that same net 0 goal that we just stated. Next, please. Mr. Chairman also mentioned in his opening speech about our commitment to the community we live in. We spent INR 109 million of CSR funds last year across 11 states in 4 projects. We are truly, truly committed to make a positive impact to the community, to the society. And again, it's captured in our purpose. And I think what shows our commitment, more than just spending the money is our engagement and involvement there. None of these programs, these 4 projects on education, on environment, on skills, is outsourced. All these projects are managed and run by SKF and our employees using some partners. But none of these are outsourced. So we measure them, we monitor them, and that's how close they are to us. So far, we've benefited over 20,000 people through our programs, and we have almost 900 employees who volunteer on these programs, that's about 1/3 of our complete employee strength. Next, please. So to summarize, I hope I gave you a flavor of our new purpose and how it really adds value to our strategy, which we rolled out last year. So combining our purpose with our strategy is what will make us immensely successful. We will keep investing in our future. And therefore, we hope to keep delivering returns that are attractive to you, our shareholders. With that, I thank you very much listening to me. Back to you, Mr. Chairman.

Thank you, Manish. That was an excellent presentation. Now I wish to apprise the members about statutory financial audit report and secretarial audit report of the company for the fiscal 2022, '23. I'm happy to share that there are no qualification, observation, comments, disclaimer or adverse remark, the audit reports of your statutory auditors for the financial year 2022, '23. May I now request Mr. Ranjan Kumar, Company Secretary, to brief members about the voting facilities available to them. Over to you, Ranjan.

Thank you, honorable Chairman. I'm pleased to inform the shareholders that in compliance with the provisions of the applicable laws and various circulars issued by the Ministry of Corporate Affairs and SEBI, the shareholders were provided the facility to cast their votes through remote e-voting platform, which was kept open from 9 a.m. of 30th July 2023 and was open until 5 p.m. of 1st August 2023. The facility of casting vote is also available to the members during this meeting. The shareholders who are present at this meeting and have not casted their vote can cast their vote using remote e-voting facility. Now e-voting is currently active, and it will be -- it will remain active until 15 minutes from the conclusion of this meeting. If a shareholder has already casted his or her vote using a remote e-voting facility, then he or she will not be allowed to cast the vote during this meeting. Now shareholders may please note that only those shareholders are allowed to vote in this meeting, whose names were appearing on the register of members as on the cutoff date and the cutoff date was 26th July 2023, since this meeting has been convened electronically there will not be any voting by show of hands. Now I would like to quickly apprise the shareholders about scrutinizers. Your company has appointed Mr. Jayavant Bhave, authorized representative of M/s. J. B. Bhave & Co. as scrutinizers to scrutinize the vote casted in this meeting. They are also present in this meeting through the conferencing. Now the combined results of e-voting casted both through remote e-voting facility as well as casted during this meeting, would be published by the company after a receipt of scrutinizers report. The results of voting would be placed on the website of the company, which is www.skf.com as well as on the website of NSDL, which is www.evoting.nsdl.com. The reports or the voting results would also be communicated to the stock exchange where the shares of the company are listed, which is BSE Ltd. and National Stock Exchange of India Ltd. We will also display the voting results on the notice Board of the company at its registered office. Now we move on to take up the resolutions which have been covered in the AGM notice, but before requesting Honorable Chairman to take up the resolutions, I would quickly explain the shareholders again about the process of taking views and questions, which have already been explained in the notice. This being a virtual AGM, the following members would be eligible to share their views and questions. The members, one, the members who have registered themselves as speaker, on or before 21st of July, as per the process explained in notice; and second, the members who have shared their questions on the designated e-mail idea of the company as was requested in the notice of this meeting. Others please send their questions on the registered e-mail ID of the company, which is [email protected]. We'll try to answer the questions unless it has been answered in this meeting. With this, I would refer back to Honorable Chairman for taking up the resolutions.

Thank you, Ranjan. Now I'd like to take up the resolutions as set forth in the notice dated 17th May, 2023 of 62nd Annual General Meeting of the company. There are 3 ordinary businesses listed as agenda number 1 to 3 and 4 special businesses listed as Agenda number 4 through 8. For draft resolution, explanatory notes and other details, the shareholders are requested to refer to notice of this AGM. I will start with the ordinary business and request the members to cast their votes if not done already on each agenda item. The facility of e-voting is available to the members until 15 minutes after the conclusion of the proceeding of this AGM. Ordinary business. Agenda Number One, it's an ordinary resolution, for adoption of auditor stand alone and consolidated financial statement of the company for the financial year 2022, '23 together with reports of Directors and Auditors thereof. Agenda number two, ordinary resolution, for declaration of final dividend of INR 40 per equity share of INR 10 each for the financial year ending 31st March 2023, that is 400%, which has been approved and recommended by the Board of Directors of your company. Agenda number three, ordinary resolution, for appointment of Director in place of Mr. David Leif Henning Johansson, who retires by rotation and being eligible offers himself for reappointment. Special businesses. Now, I take up the special business, Agenda item number 4 to 8 of the AGM notice. First is agenda number four, ordinary resolution, for the reappointment of Mr. Manish Bhatnagar, as Managing Director of the company. Agenda number five, ordinary resolution, for approval of related material-related market transaction with SKF GmbH, Germany. It's a fellow subsidiary. Agenda number six, ordinary resolution, for approval of material-related party transaction with SKF Engineering and Lubrication India Private Limited, which is a fellow subsidiary. Agenda number seven, ordinary resolution, to ratify the remuneration to cost auditor for the financial year 2022, '23. Agenda number eight, ordinary resolution, to ratify the remuneration to cost auditor for the financial year '23,'24. With this, we have gone through all the agenda items of this Annual General Meeting. Thank you members for your participation in these agenda items. I will now request Mr. Ranjan Kumar, Company Secretary to invite members who have registered themselves as speakers, on announcement of the name, the audio or video of respective number will be opened. I would request the members to summarize their views/questions in 2 minutes max, so that other members may also get sort of an opportunity of expressing their views and raise their questions. Questions raised by the speakers shall be addressed once all speakers have spoken.

Thank you, honorable, Chairman. In the interest of time and for the benefit of the shareholders, I'll keep a time check. The shareholders are requested again to summarize their views of questions in 2 minutes. With this, we'll invite our first speaker, which is Ms. Lekha Shah.

Hello, can you hear me well?

Yes, ma'am you are audible. Please go ahead.

Thank you, Sir. Respected Chairman Sir, Board of Directors and my fellow members, good afternoon to all of you. Myself Lekha Shah from Mumbai. First of all, I'm very much thankful to our Company secretary Mr. Ranjan Ji for outstanding, very good investor services and also sending me the AGM notice well in time which is full of knowledge, facts and figures in place. Thank you, Chairman Sir, for explaining us about the company. Congratulations for excellent work, Sir. Sir, I pray to God that He always showers His blessings upon you. I would like to thanks for all the person of company for receiving awards on recognition of our plan during the year '22 and '23. And also, I am glad, the company is doing very well in the field of CSR activities. Sir, I would like to ask few questions. My first question is total number of employees? And my second question is, how many woman employees working in our company? So I strongly support all the resolutions for today's meeting and my best wishes always for our company and its prosperity. Thank you so much, sir. Sir, I hope the company will continue video conference meeting in future. Thank you so much, sir.

Thank you Ms. Shah. Thank you so much for your appreciation also. Now we move on to our next speaker shareholder, which is Mr. [ Anil Mehta ].

Sir, may I request you -- please go to Bimal Agrawal since [ Anil Mehta and Ronald Fernandes ], for some reason, cannot be reachable.

Okay. Thank you for update. So can we connect Mr. Bimal Agrawal, please?

Can you hear me?

Mr. Agrawal, yes sir.

First of all, I thank the company's Secretary and his team and also the management staff and the shareholders of the company. As Chairman has already explained in my question in the -- what I was supposed to raise. I got nothing to ask and always keep the meeting online. Already my question was asked -- answered by the Chairman. I've got nothing to ask. That's all from me. Thank you, and always keep the video conferencing. That's all from me. Thank you very much. And I have supported all the resolutions, I have already supported. Thank you very much.

Thank you, Mr. Agrawal. So with this, we move on to the next speaker shareholder. Do we have Mr. Yusuf Rangwala.

[Foreign Language]. First, I thank our Rama Kumar, Company's Secretary is hard working [Foreign Language] whether you're joining or not. [Foreign Language] there are so many other companies which arrange a bus [Foreign Language]. We are #1 in state in bearing [Foreign Language]. There are so many other companies, just for example, [ Shaks Bearing ]. Who are the main competitor in this business? [Foreign Language] FAG Bearing? I would love to know. And what are total number of staff at present? [Foreign Language].

Thank you, Mr. Yusuf. Can we move on to the next speaker now, Mr. Kirti Shah.

[Foreign Language] Mr. Chairman, the net profit is stagnant. March quarter, December quarter, [Foreign Language] Net profit margin is almost around [ 11%] [Foreign Language] Modi Ji talked about the third-largest biggest economy [Foreign Language].

Thank you, Mr. Shah. Now we move on to our last speaker, Mr. Aspi Bhesania.

Sir, can you see me and hear me?

Yes we can.

Sir, I am Aspi from Mumbai. thanks for giving me an opportunity to talk. Just because of a hybrid meeting, online meeting, I'm able to talk. Next year, when the physical meeting starts, please continue with hybrid. Otherwise you take shareholders from Mumbai as suggested by one of the shareholders. Sir, Maruti had started a plan as a 100% subsidiary of Suzuki. And now they are merging it. So what are your plans about our industrial plant, which is a 100% subsidiary of the parent. Sir, last 3 years, our sales and profits are growing very fast. Can I expect the same trend to continue? Sir, how much percentage of our revenue is from electric vehicles and how much you expect to increase it to? Sir, are we prepared for hydrogen cars? Mukesh Ambani is sinking a lot of funds in hydrogen vehicles. So what are your plans for hydrogen vehicles? Sir, thank you very much and all the best for the future.

Thank you, Mr. Aspi. So with this, we have -- back end team, can you check if we have the other speaker shareholders available now, who could not join initially?

Ranjan, sir, at the moment, nobody has joined us. You can please proceed.

Thank you. So with this, we have concluded all the speaker shareholders. Back to honorable Chairman.

Thank you, shareholders. Thank you, Ranjan. I now would like to request Manish Bhatnagar, Managing Director to answer the questions raised by the shareholders during this meeting comprehensively. Over to you Manish.

Well, thank you, first of all, Ms. Shah, Mr. Agrawal, Mr. Rangwala, Mr. Kirti Shah and Mr. Aspi Bhesania for your questions. And we've also received some questions by e-mail, which of course, we'll respond to. I will try and combine all the questions into some common themes and trying to address those in my responses. First of all, I really appreciate your comments about the format of this meeting. We have a very hard-working dedicated team that is constantly working, to ensure that we have a seamless online platform. I'm very glad to hear that all shareholders are experiencing [indiscernible]. So we appreciate your comments for that. And we intend to keep continuing this format to many of you, online format for some more time. It certainly allows for a lot more participation of shareholders and we should do it a physical format a year on. So that will keep continuing. There were some questions on competition. This, of course, we compete with many companies. It's a very competitive market, one of the shareholders mentioned a few names, but there's more than that. We compete with multinational companies. We compete with Asian competitors. We compete with local companies, bearings is a very, very competitive market. And therefore, we have to be constantly vigilant of competition, constantly build on the relationships with our customers. And I think most important for us is we are the [ cutting edge transformation ]. That's what SKF is known for. We don't want to be a [ me too ] commodity bearings business. We want to be the [ cutting edge, so clear ] that customers come to when [ they want ] for their high-performance equipment. And that brings me to the other question that was asked around, how are we preparing for the future? We are really preparing for the future, sort of some people who ask me about the company. If we are able to look around the corner before we get to the [ call ], that's a sign of a great company. And that's what we are trying to do. It's easy to look around the corner when you've gotten to the corner and so can now we start investing in it. But we are now preparing because we don't know what 3 years out will look like. Half of you mentioned electrification of cars, some of you mentioned hydrogen. And there could be many, many other scenarios going forward. One of you mentioned India maybe the third largest economy in the next few years. We are preparing for all that. The best way we can prepare for it is to build on our strategy, really, really well. Our intelligent and clean strategy, if executed well we'll take care of the future like nothing else. So whether it's good work areas or new technological investments or put the management [ running down ] in focus, we are constantly evaluating those [indiscernible] of course, investments in people, investments in manufacturing, investments in supply chain and all this will help us prepare for the future. There was a question on electric cars. What's our percentage of that in that market? About 50% of our business today is automotive and about 5% or 6% of that is electric so far. But that is not to say we remain on that -- at this number for too long because we see electrification happening all around. It's 2 wheelers now -- as of now, tomorrow it will be long haulage trucks. It could be passenger vehicles on a much larger scale. So we are prepared for that. We are investing in technology, investing in manufacturing and most importantly investing in partners and customers, so we know what they are preparing for and how can we help them get to where they need to be. There was a question on M&A in terms of acquisitions, et cetera, you mentioned [indiscernible] and other companies, et cetera. So we are always on the lookout for good partnerships. These partnerships could be joint ventures, acquisitions, technology partnerships, sales partnerships. It's a whole gamut of options available to us. We're always evaluating options, assisting them and acting on them as we [indiscernible]. So you will, of course, hear more about those as they come to fruition. With that, Mr. Chairman, I believe I've answered most of the questions. In fact, all the questions that were raised. And like I said, there were some questions on e-mail which were very specific on numbers, et cetera, which [indiscernible]. Back to you, Mr. Chairman.

Thank you, Manish, for comprehensively answering all the questions in the list. Now since all the agenda items have been appropriately dealt with, I declare the conclusion of this meeting. I take this opportunity on behalf of the entire Board and the management team to thank all of you for an effective participation, useful suggestion and encouraging words. We look forward to your continued support. The voting facility would remain open for next 15 minutes for shareholders who have not yet cast their vote. Thank you.